Time to Buy Fairfax Financial Holdings Ltd After Today’s Gap Up?

November 7, 2016November 7, 2016Darrin Black

The stock of Fairfax Financial Holdings Ltd (TSE:FFH) gapped up by $2.96 today and has $952.44 target or 36.00% above today’s $700.32 share price. The 7 months technical chart setup indicates low risk for the $16.35B company. The gap was reported on Nov, 7 by Barchart.com. If the $952.44 price target is reached, the company will be worth $5.89 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. About 16,595 shares traded hands. Fairfax Financial Holdings Ltd (TSE:FFH) has declined 4.88% since April 1, 2016 and is downtrending. It has underperformed by 6.83% the S&P500.

Fairfax Financial Holdings Ltd (TSE:FFH) Ratings Coverage

Out of 3 analysts covering Fairfax Financial Holdings Limited (TSE:FFH), 1 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 33% are positive. $780 is the highest target while $550 is the lowest. The $693.33 average target is -1.00% below today’s ($700.32) stock price. Fairfax Financial Holdings Limited has been the topic of 5 analyst reports since February 22, 2016 according to StockzIntelligence Inc. RBC Capital Markets maintained the shares of FFH in a report on Friday, April 29 with “Outperform” rating.

More notable recent Fairfax Financial Holdings Ltd (TSE:FFH) news were published by: Reuters.com which released: “BRIEF-Fairfax Financial Holdings Limited Q3 financial results” on November 03, 2016, also Marketwired.com with their article: “Fairfax Financial Holdings Limited: Third Quarter Financial Results” published on November 03, 2016, Bloomberg.com published: “One Big Canadian Investor Dumps 90% of U.S. Long-Bond Holdings Ahead of Election” on November 04, 2016. More interesting news about Fairfax Financial Holdings Ltd (TSE:FFH) were released by: Fool.ca and their article: “Fairfax Financial Holdings Ltd. Bets on Retail” published on September 14, 2016 as well as Fool.ca‘s news article titled: “5 Reasons to Consider Fairfax Financial Holdings Ltd.” with publication date: November 01, 2016.

Fairfax Financial Holdings Limited is a holding company. The company has a market cap of $16.35 billion. The Company, through its subsidiaries, is engaged in property and casualty insurance, and reinsurance and investment management. It has a 17.99 P/E ratio.